Shenzhen-listed Sainty Marine’s general manager and deputy general manager have ended their stints at the company recently, as the company had defaulted on a CNY63 million (USD10 million) bill of exchange.
Wang Junmin, general manager, and Li Jiu, deputy general manager, resigned from their respective posts at Sainty Marine recently on personal grounds, a stock filing of the company said on 7 May.
Wang and Li had been chairman and general manager of Sainty Marine respectively, before their former positions.
Both former executives have been reprimanded by Shenzhen Stock Exchange over a string of violations of exchange rules on information disclosures. Most of the violations were related to Sainty Marine’s business partnership with insolvent Nantong Mingde Heavy Industry (NMHI).
As of end of 2014, Sainty Marine provided NMHI with a net total of CNY2.5 billion to finance the building of vessels under construction at the Nantong yard, making Sainty Marine the single-largest creditor of the Nantong yard.
The Nantong yard has entered into court receivership since Sainty Marine applied for the bankruptcy restructuring of NMHI in December 2014.
In addition, Wang had opposed the company board’s decision in April to take a CNY1 billion provision in its 2014 annual results for non-performing loans the company had extended to NMHI in past years.
On 6 May, Sainty Marine said it had defaulted on a CNY63 million bill of exchange drawn for NMHI.